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Implementing an Act to Protect and Preserve Home Ownership

Implementing Chapter 206 of the Acts of 2007, An Act Protecting and Preserving Home Ownership

The Division of Banks is currently implementing legislation that is designed to offer much needed relief to existing homeowners and ensure the necessary legal and regulatory framework is in place to prevent the ongoing occurrence of the mortgage-related issues the Commonwealth is dealing with today. This legislation for protecting and preserving home ownership is another important step in addressing the subprime lending crisis and preventing future abuses in mortgage lending. Some of the key provisions of the law include: monitoring and analyzing foreclosure activity patterns in Massachusetts, improving oversight and monitoring of certain mortgage lenders, requiring loan originators to be licensed by the Division of Banks, extending $2 million in grants to establish 10 education centers around the Commonwealth and promote first-time homebuyer and foreclosure counseling, and prohibiting a subprime adjustable rate mortgage for first-time homebuyers unless they a) affirmatively opt into a subprime adjustable rate product, and b) get in-person counseling from a certified counselor. This legislation is a comprehensive effort to provide borrowers with the educational information they need before entering into a mortgage. It also ensures that the standards that honest lenders already meet are followed by the entire lending industry. Check the links below for further information.

Compendium of Actions Taken Relative to Foreclosures and the Mortgage IndustryBoston, June 30, 2009 - On the eve of the one year anniversary of mortgage loan originator licensing in Massachusetts, the Division of Banks issued a "Compendium of Actions Taken Relative to Foreclosures and the Mortgage Industry". The Compendium summarizes the efforts of the Division to implement Chapter 206 of the Acts of 2007 as well as other efforts to protect consumers, create higher industry standards, enhance supervision and enforcement of the mortgage industry, and improve local partnerships with State and municipal agencies.